The purpose of this course is to enable learners understand the functioning of financial markets and institutions, develop critical thinking skills on how to participate in trading in such volatile markets and to appreciate the role of financial markets and institutions in the growth of a country’s economy.

Upon completion of this course, students should be able to:

(i)     Identify the various types and characteristics of financial markets and institutions

(ii)  Explain the role and functions of various financial markets and the instruments

(iii)   Make investment decisions related to financial markets and institutions

(iv)  Create regulations and framework of financial markets.

Introduction to Financial Institutions and Markets – An overview of a Financial System, Functions of Financial Systems, Types of Financial Markets and Institutions. Financial Assets and Instruments; Financial intermediaries and intermediation Process. Role and Regulations of Financial Intermediaries (Central Bank Act, Banking Act, MFI Act), Challenges of Commercial Banking; Risks of Financial Institutions, Foreign Exchange Markets; Financial Markets – Money Markets and Capital Markets Instruments; Risk Management using Market instruments, Derivatives Securities, Investment Banks and Mutual Funds products (Unit Trusts); Organization and Functioning of Securities Markets – Security exchange markets and regulation; Theory of Rational Expectations and Efficient Market Hypothesis, Implications of Efficient Market Hypothesis; Term Structure of Interest Rates – Determinants of interest rates, Yield Curve, Stock Market reporting, Market Indices and Investing overseas; Arbitrage Operations – Conditional Arbitrage, Location Arbitrage, Cross Currency Arbitrage, Triangular Arbitrage and Covered Interest Arbitrage; The Emerging issues in Financial Markets and institutions (Regional Integrated financial markets and instructions, Technology and associated risks, emergency of  cryptocurrency)